Dean Foods has filed for Chapter 11 bankruptcy protection as it seeks to sell the company, but dairy industry leaders don’t think this is a trend for U.S. processors. The company cited the ag labor shortage and the trade war as some of the reasons for the bankruptcy decision. However former Ag Secretary Tom Vilsack, now CEO of the U.S. Dairy Export Council doesn’t think that’s to blame.
Dean Foods has also struggled with consumers turning to nondairy milk or private label products. And USDA data shows per capita consumption of fluid milk has fallen 26-percent in the last two decades.
South Dakota dairy producer and board member for Dairy Farmers of America Allen Merrill says the industry is working on innovations to bring consumers back to milk.
At the same time, fluid milk is still a mainstay of the American diet. Merrill, who also chairs the Midwest Dairy Association, says the industry and the checkoff can build on that.
Dean Foods is engaged in advanced discussions with DFA about selling substantially all of its assets.
